Rome: bare ownership

Giulia Michieletto
Author

Index

Rome, with its rich history and timeless charm, offers a unique opportunity through the concept of "bare ownership". Properties available under bare ownership in Rome include apartments and houses of various types and sizes, located in various areas of the city.

This real estate tool allows investors to purchase a property at a price below market value, while the seller retains the right to live in the property for life.

In this document, we will explore the advantages and peculiarities of bare ownership in Rome, providing a practical guide for those who want to invest in this fascinating city.

Let's discover together why "bare ownership" can be a smart and profitable choice.

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Introduction

What is bare ownership

Bare ownership is a particular type of real estate ownership in which the owner, called the “bare owner”, owns the property but does not have use of it.

The usufruct, or the right to live in the property or to derive benefits from it, remains in favor of another person, called the “usufructuary”. Bare ownership properties often include several bedrooms and an eat-in or open-plan kitchen, making them attractive to investors.

This situation often occurs when an elderly person sells the bare ownership of their home to raise cash, while retaining the right to live there until the end of their life.

From an investor's perspective, purchasing a bare ownership in Rome can represent a long-term investment opportunity, with the prospect of acquiring a valuable property at a price below the market.

Advantages of bare ownership

Investing in bare ownership in Rome offers numerous advantages.

First of all, the purchase price is generally lower than the market value of the property, since the seller retains the right of usufruct. This allows investors to enter the real estate market with a small initial capital.

Furthermore, bare ownership is exempt from certain taxes, since the usufructuary is responsible for the taxes related to the use of the property.

Another advantage is the possibility of revaluation of the property over time, especially in a historic and touristy city like Rome, where property values tend to rise. Having an eat-in kitchen and a full bathroom makes the property even more attractive, offering functional and comfortable spaces for everyday life.

Finally, the security of the investment should not be overlooked: bare ownership is a real right, therefore guaranteed by law, offering solid legal protection to the investor.

Rome and bare ownership

Rome, with its historical and artistic heritage and strategic location, represents an ideal market for investing in bare ownership.

The Eternal City attracts millions of tourists every year and offers a high quality of life, factors that make real estate properties particularly attractive.

The proximity to public transportation makes the area even more convenient and accessible. Investing in bare ownership in Rome means being able to access properties located in prestigious and historic neighborhoods, such as the historic center, Trastevere, or Parioli, at a lower cost than the market.

Areas such as the Tomb of Nero, located along the Cassia Entro Gra, are particularly relevant for those looking for a good investment.

Furthermore, the Roman real estate market tends to be stable and growing, ensuring a long-term appreciation of the property. Bare ownership in Rome, therefore, offers not only an opportunity for immediate savings, but also a prospect of future earnings, making it a smart choice for those wishing to invest in real estate.

Real estate market in Rome

Recent Trends

In recent years, the real estate market in Rome has shown signs of recovery and stability. After a period of decline, property prices are slowly rising, thanks also to renewed investor confidence.

A key factor is the increased demand for properties in central and historic areas, where availability is limited and values are constantly rising. Furthermore, there is growing interest in bare ownership, seen as a beneficial solution for both buyers and sellers.

Buyers, in fact, can access premium properties at discounted prices, while sellers, often elderly, obtain immediate liquidity while retaining the right to live in the property. This trend is particularly strong in neighborhoods like the historic center, Prati, and Aventine, where the beauty and historical importance of the properties attract both Italian and foreign investors.

Prices and Valuations

The real estate market in Rome presents a notable variety of prices, influenced by location, historical features, and demand.

Central areas like the historic center, Trastevere, and Prati tend to have the highest prices, with valuations that can exceed €7,000 per square meter. Properties in these areas are often located on the third or sixth floor, offering panoramic views and greater tranquility. However, in less central or regenerated neighborhoods, prices can be significantly lower, offering attractive opportunities for those seeking a good deal.

Bare ownership, in particular, allows you to purchase high-value properties at a reduced price, often 30-50% off market value. This price difference reflects the usufruct right retained by the seller, who can live in the property for their entire life. To correctly evaluate a property in bare ownership, it is essential to consider the seller's age and the expected duration of the usufruct, as well as the location and condition of the property.

Investment Opportunities

Investing in bare ownership in Rome offers numerous interesting opportunities, both for private and institutional investors. The Italian capital, with its timeless charm and historical importance, boasts a real estate market that tends to appreciate over the long term. Buying a property in bare ownership allows you to obtain a property at a discounted price, with the prospect of significant future appreciation once the usufruct period expires.

Furthermore, Rome offers a variety of neighborhoods, each with its own unique characteristics and growth potential. Areas such as Monti, San Giovanni, and Testaccio are undergoing a redevelopment process that makes them particularly attractive to investors. Even peripheral neighborhoods, such as Via Marco Fulvio Nobiliore in Tuscolana and Cinecittà, are gaining interest thanks to new urban planning and infrastructure projects.

Bare ownership, therefore, represents a safe and profitable investment opportunity, especially in a dynamic and constantly evolving city like Rome.

How to purchase a bare ownership in Rome

Purchase procedure

Buying a bare ownership in Rome requires a series of well-defined steps.

The first step is to identify the property of interest, evaluating aspects such as location, state of repair, and price. Many of the properties for sale feature an entrance hall/living room, offering a functional layout.

Once you've found the ideal property, it's advisable to rely on a real estate agency specializing in bare ownership to obtain professional assistance and ensure a secure transaction. After reaching an agreement with the seller, the preliminary sales agreement is drawn up, which is registered with the Revenue Agency.

Next, the notarial deed, the official deed of sale, takes place, during which the bare ownership right is transferred. It's important to carefully check all legal documents and ensure there are no mortgages or liens on the property. Finally, the new bare owner must register the purchase in the relevant land registry.

Required Documentation

To purchase a bare ownership in Rome, it is essential to collect and verify a series of documents necessary to ensure a safe and legal transaction.

First of all, the buyer must present a valid ID and tax code. The seller, on the other hand, must provide the property title, which may be a previous deed of sale, a donation, or an inheritance. It is also essential to obtain an updated land registry certificate, which confirms the legal and tax status of the property.

Furthermore, it is advisable to request a land registry plan to verify that the actual state corresponds to that declared in the official documents. Properties for sale often include an entrance hall, which is an integral part of their features.

If the property is subject to restrictions, such as mortgages or easements, these must be clearly highlighted. Finally, during the notarial deed, both the buyer and the seller must present the complete documentation for the official registration of the bare ownership.

Practical advice

Buying a bare ownership in Rome can be an advantageous operation, but it is important to follow some practical advice to avoid future problems.

First of all, it is essential to carry out an accurate evaluation of the property and its state of conservation, perhaps with the assistance of a technician or an expert. It's also helpful to consider the number of bedrooms in the property, as this affects its functionality and overall value.

Furthermore, it's advisable to know the usufructuary well, as the duration of their right will influence the value of the investment. Another aspect to consider is the area in which the property is located: choosing neighborhoods with good growth and appreciation prospects can increase the value of the bare ownership over time. It is also important to check any condominium fees and other tax obligations that may apply to the property.

Finally, relying on professionals in the sector, such as real estate agents and notaries, can guarantee greater security during all phases of the purchase, from the initial negotiation to the registration of the deed.

Tax advantages of bare ownership

Tax benefits

Buying a bare ownership in Rome offers significant tax breaks that make this type of investment even more attractive.

One of the main advantages concerns the registration tax, which is calculated on the value of the bare ownership and not on the entire value of the property. This results in significant savings, especially for high-value properties. Furthermore, the usufructuary is responsible for taxes related to the use of the property, such as IMU and TASI, relieving the bare owner of these expenses. Ordinary and extraordinary maintenance costs are also generally borne by the usufructuary, unless otherwise specified in the contract.

Finally, bare ownership does not entail income to be declared for IRPEF purposes, since the right of usufruct does not generate income for the bare owner. These tax advantages make bare ownership a very convenient option for those wishing to invest in the Roman real estate market.

Impact on taxes and duties

Buying bare ownership in Rome has a positive impact on various taxes and duties, making this option very advantageous from a tax perspective. First, the registration tax is calculated only on the value of the bare ownership, which is lower than the total value of the property, thus reducing the amount payable.

Furthermore, the usufructuary, who retains the right to live in the property, is responsible for paying the IMU (Single Municipal Tax) and the TASI (Tax on Indivisible Services). This relieves the bare owner of these tax obligations. Ordinary and extraordinary maintenance costs of the property, by law, are generally borne by the usufructuary, unless otherwise agreed.

Finally, since the bare ownership does not generate income, there is no impact on the IRPEF (Personal Income Tax) for the bare owner. These factors make bare ownership a tax-efficient option for investors.

Conclusion

Final reflections

In conclusion, investing in bare ownership in Rome represents an interesting and advantageous opportunity for several reasons. The purchase at a price reduced from market value, combined with tax breaks, makes this solution particularly attractive for those seeking a safe and profitable investment. Rome, with its rich cultural heritage and constant tourist attraction, guarantees real estate appreciation over time.

However, it is essential to carefully evaluate the property, the duration of the usufruct, and the contractual conditions to avoid future surprises. Relying on industry professionals can provide greater security and peace of mind throughout the entire buying process. Ultimately, bare ownership offers a unique combination of immediate savings and long-term growth potential, making it a smart choice for investors in Rome's real estate market.

Next Steps

If you're interested in investing in bare ownership in Rome, it's important to follow a few key steps to ensure you make an informed choice. Start with thorough research of the Roman real estate market, focusing on neighborhoods with the best opportunities for appreciation. Consult a real estate agency specializing in bare ownership for professional assistance and to identify the best available deals. Carefully evaluate each property, considering both the economic and legal aspects.

Once you've found the ideal property, verify all the necessary documentation and consult a trusted notary to sign the deed. Don't forget to factor in incidental expenses and potential tax implications.

Finally, plan long-term, considering the potential duration of the usufruct and market growth prospects. By following these steps, you can make a safe and profitable investment in bare ownership in Rome.

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